Off Rental Period for ReFX Contracts

[gupteajay]

Dear All,

I have a scenario wherein off rental period is to be managed in ReFX contract. 

Contract period is for 5 years with multiple objects assigned. However, during the contract period, it is agreed with customer to stop the rental for one object for the period of 3 months. Post which normal rental should start. I tried managing the same with condition end dates, however the linearization still shows the annual revenue spread over off rental period of 3 months. 

Kindly let me know if there is any alternative solution to manage this requirement.

Regards,

Ajay

[andre_nakratzas · Accepted solution]

Hi Ajay,

The best approach for this, rather than to mess around with the dates of the original condition type (e.g. Rent), is to create a separate condition type called e.g. Rent Abatement (some customers prefer Rent Free or Rent Discount).

This condition type is a copy of the RENT condition type but with the inverse entries. So in V_TIVCDFLOWTYPE you'll maintain D/C indicator in reverse, e.g.

Rent        Credit Posting

Rent (+)   Credit Posting

Rent (-)    Debit Posting

for the Rent Abatement you would use:

Rent Abatement       Debit Posting

Rent Abatement (+) Debit Posting

Rent Abatement (-)  Credit Posting

etc.

In V_TIVRAACCDET you would have to do the same where you swap around the debit and credit account symbols.

This way on the contract you can leave the RENT condition untouched and for any temporary rent free, or discount you use the RENT ABATEMENT condition type using the start and end date for the duration of the discount.

This is very clean and gives better financial reporting as you can actually report on how much discount has been given/received.

Regards, Andre

[gupteajay · Accepted solution]

Dear Andre,

Thank you for the message. Let me try with you suggested approach.

Regards,

Ajay